(Anti-theft, will be sent later) Abstract: Along with the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The thod of spreading gas is no longer confined to traditional promotion models, and the influence of gas has gradually extended to all aspects of life. Correspondingly, ga companies also need to constantly integrate resources, innovate, update, and improve performance to keep pace with the rapid developnt of the tis. The diversification strategy aptly ets the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, the diversification strategy, as the preferred mode of enterprise developnt, is equally applicable to gaming companies. This article illustrates the impact of diversification strategies on the performance of ga companies, using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategic approach taken by enterprises during the operation process to occupy new markets and explore new markets more extensively. It is also a strategic plan adopted by enterprises to avoid risks encountered in operating a single business and to enter new business fields in a targeted and prepared manner. The practical application of diversification strategies in ga companies can effectively improve company performance, providing a process of change from quantitative to qualitative for the developnt of ga companies.
1. The macro background of diversification strategy
Entering 2021, under the effective control of the pandemic by the country, people's lives have returned to normal, and the economy and culture are also showing a great recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to pre-pandemic levels[1]. This is very favorable news for the gaming industry, which accounts for a significant proportion of the cultural industry. Although the arrival of the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities has always impacted ga company performance. Through the recovery of the cultural industry, this ans that the great developnt and flourishing of the cultural industry can promote and drive more ga companies onto the path of sustainable developnt[2].
From the outbreak of the pandemic last year to the current stable situation, the country has introduced relevant policies from multiple aspects such as finance, institutions, and banking to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period. However, due to the fact that many enterprises want to squeeze into the online market, the competitive environnt within the cultural industry has beco extrely fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society at this ti. But within these short two years, many successfully transford cultural industries have erged, most of which rely on diversification strategic models to accelerate transformation and upgrade. During the pandemic prevention period, where resident consumption levels have significantly increased, they have also achieved fruitful results, gaining more diversified developnt models and sources of inco, such as the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period, which is worthy of reference for most ga companies[3].
2. Brief analysis and classification of diversification strategy
(a) Brief analysis of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model is related to managent guidelines and policies in many countries, so that today every enterprise, big or small, is seeking a place according to the developnt model of diversification strategy[4].
(b) Classification and implications of diversification strategy
There are four types of diversification strategies: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different modes derived from diversification strategy have different implications. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can et new user needs, thus driving market consumption. Vertical integration refers to enterprises deriving vertically based on their developnt situation, using their product industry chain to penetrate other market fields, seeking new consur targets. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production scope, realizing the whole process through the transformation of existing technology. Conglorate diversification emphasizes more on expanding operating range variations, requiring enterprises to relate to factors like raw materials, technology, and market associated with their products to expand their operating range[5].
3. Impact of diversification strategy on ga company performance
It can be said that in the operation process of all ga companies, the impact of diversification strategy on company performance is uniformly divided into changes in operating models and shifts in strategic planning. From these two parts of the transformation gradually produces effects, driving company performance improvent. The impact brought by diversification strategy is diverse. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga company performance[6].
(1) Change in operating model
Currently, Sanqi Mutual Entertainnt Ga Company's main operating scope is quite extensive, which is also the advantage brought by diversification strategy. The company not only involves interactive entertainnt operations but also takes full charge of the developnt and distribution of mobile gas and web gas. Moreover, in recent developnts, it has continuously innovated by keeping up with era technology, expanding the market to include film, television, and ani, also shaping its market cultural industry chain in music, VR technology, and various live streaming and pan-entertainnt businesses belonging to Sanqi Mutual Entertainnt Ga Company.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the developnt path in the early stage was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the industry chain of Sanqi Mutual Entertainnt did not involve ga and entertainnt industry operations, posing a risk of being swallowed by the market at any ti. But relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, with poor operations in the later stage and market contraction, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with a sixty percent equity stake. Although nominally acquired, for Sanqi Mutual Entertainnt, this was an opportunity worth grasping for developnt. Through multi-party collaboration between the two companies, they completed the asset restructuring of various industries. It is worth ntioning that the exhibition strategy always operated by Sanqi Mutual Entertainnt began to show its edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company prior to acquisition to a dual-main business listed company integrating advanced manufacturing and modern cultural creativity, corresponding to changes in company operating strategy. The scope of business covered by the original cultural creative industry
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